PART A:It has been observed that the Japanese pay $25 000 for a Toyota Camry Hybrid manufactured in Japan, whereas Australians pay $35 000 for the same car manufactured in Australia. As an international trade economist, briefly explain why.{Hint! Think about opportunity cost}[5 marks].

PART B:The Japanese government has proposed a trade agreement with Australia in which Australia would import Toyota Camry Hybrid cars from Japan. As an adviser to Australia's Minister of Trade,

i. explain how trade would positively impact the Australian economy.[5 marks]

ii. explain how trade would negatively impact the Australian economy.[5 marks]

iii. The government has decided to impose a tariff on each Toyota imported to Australia. Explain the impact of the tariff on producers & buyers of the cars.[10 marks]

iv. Is the outcome of the tariff policy efficient? Explain in detail.[5 marks]